JD.com (JD), 9618 HK; 01 (May 15 - Feb 23)

[winston]

not vested

E-commerce firm JD.com beats second-quarter estimates, adds record new users amid regulatory tightening

Revenue at JD.com rose to US$39.14 billion in the quarter ended June 30, up about 26 per cent from a year earlier

The company’s annual active customers reached 531.9 million in the second quarter, a 27.4 per cent increase from the same period last year

Net profit fell to 794.3 million yuan, down from 16.4 billion yuan a year earlier.

Sales in JD.com’s product segment, which consists of revenue from e-commerce customer purchases, rose to 219.69 billion yuan, up more than 23 per cent from a year earlier.

Source: Reuters

https://www.scmp.com/tech/big-tech/arti ... ates-boost

[winston]

not vested

JD beats estimates

by Caroline Zheng

JD.com (9618) sales beat analyst estimates as consumer spending improved, defying a crackdown on the Chinese internet sector that has dragged on growth across the industry.

Net revenue rose 26.2 percent to 253.8 billion yuan (HK$304.98 billion) in the second quarter ended June 30.

Analysts had average revenue estimates of 248.5 billion yuan.

Net income for the same period tumbled to 794.3 million yuan, down 95.2 percent from 16.4 billion yuan a year earlier.

Non-GAAP net income for the second quarter of 2021 was 4.6 billion yuan, dropping 22 percent but still beating market expectations.

Source: The Standard

https://www.thestandard.com.hk/section- ... -estimates

[winston]

no9t vested

JD-SW 2Q Net Income Slips 95.2% to RMB794M; Non-GAAP Net Income Drops 22% to RMB4.6B

JD-SW (09618.HK) announced the 2Q results ended June 2021.

It reported net revenues of RMB253.8 billion, representing a 26.2% increase from the same period in 2020.

Net income was RMB794 million, down 95.2%.

Non-GAAP net income was RMB4.6 billion, down 22%.

Income from operations was RMB300 million, compared to RMB5 billion for the same period last year.

Non-GAAP income from operations was RMB2.5 billion, compared to RMB5.6 billion for the second quarter of 2020.

Source: AAStocks Financial News

[winston]

not vested

JD.com (JD US)
2Q21: Strong Results Overshadowed By Widening Loss From New Business Segment

JD.com reported a solid set of 2Q21 results.

Revenue grew 26% yoy to Rmb253.8b, in line with our and the street’s expectations.

Non-GAAP net profit for 2Q21 was Rmb4.6b, representing a 25% yoy decline but 31% above the street’s estimate of Rmb3.5b, due to the widening loss from a new businesses segment.

2Q21 non-GAAP net margin declined 1.1ppt yoy to 1.8%.

We maintain our BUY rating for JD with a lower target price of US$77.00 (HK$300.00), down from US$86.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e26660234f

[winston]

not vested

JD.com Inc (9618 HK/ JD US): <Result first take> 2Q21 results tops estimates [BUY/ BUY, TP HK$487.0/ US$126.0]

2Q21 results were above expected upon a better-than-expected performance in revenue and adjusted earnings due to improved supply chain and operating efficiency.

JD Retail continued its growth in Q2 from a high base last year. The annual active users increased by nearly 32m, setting a record of single quarter net increment.

Despite the pandemic resurgence, we expect JD.com to be the best performed e-commerce platform due to its superior supply chain capability.

They are still on track of achieving the target of 100mn new user, via its expansion in supermarket category and further penetration in lower tier cities.

We believe the sentiment over internet remains fragile. Any further clarification from regulators will help to ease the fear. Yet, JD’s outlook remains intact supported by wider user base and higher ARPU.

Source: DBS

[winston]

not vested

GOOD BEAT; OPTIMISTIC OUTLOOK.

Solid 2Q21 results with strong AAC growth
Well-positioned in the uncertain regulatory environment
2H21 optimism; FV of USD90 (JD US) / HKD 351 (9618 HK)

JD.com’s 2Q21 results came in above expectations.

Net revenue grew 26% YoY to RMB253.8b, which was 2% above consensus.

Non-GAAP PATMI came in at RMB 4.6b (-22% YoY), or ~31% ahead of consensus.

Annual active customer (AAC) accounts increased by 27% YoY to 531.9m in the 12 months ended 30 June 2021, which we deem to be strong and demonstrates that JD’s new user acquisition continues to work.

We believe that JD could be relatively well positioned in the midst of regulatory uncertainties, given that the company does not expect changes in tax policies, is a likely net beneficiary of certain anti-monopoly rules and offers comprehensive medical and social security benefits to its 300k full-time staff.

JX Pinpin (JD’s CGB business) has showed good progress despite having a late start, with GMV and orders increasing more than 300% QoQ in 2Q21, which we believe reflects JD’s focus on supply chain and effective user acquisition.

Management also sees sustained growth momentum for 3Q QTD, reiterates >100m user addition target for this year, and continues to expect stable 2021 margins for its core JD Retail business.

While our FV eases from USD95 to USD90 (JD US) / HKD369 to HKD351 (9618 HK) following adjustments, we remain constructive on JD given its solid growth prospects as well as relatively better positioning (vs. peers) in the current regulatory environment.

Source: OCBC

[winston]

not vested

Strong user base growth

JD reported 2Q21 revenue of Rmb254bn, up 26.2% yoy, in line.

Non-GAAP net profit was Rmb4.94bn, down 16.8% yoy, below our expectation because of higher losses from JD Logistics and new business initiatives, and no Covid-related benefits.

Management expects JD Retail’s full year OPM to be stable yoy.

We expect continuous heavy investment in the supply chain and logistics capabilities
in lower-tier markets to hinder JD’s margin expansion in 2H21F.

Reiterate Add with a new DCF-based TP of HK$341, as we cut our earnings forecasts
to reflect some margin risk

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 52A600E43B

[winston]

not vested

UOB Kay Hian lowers JD.com's TP to US$77 on widening loss from new business segment

by Felicia Tan

UOB Kay Hian lowers JD.com's TP to US$77 on widening loss from new business segment - THE EDGE SINGAPORE

JD.com’s revenue grew 26% y-o-y to RMB253.8 billion ($52.98 billion), in line with the expectations forecasted by the analysts as well as consensus.

Non-GAAP (generally accepted accounting principles) net profit fell 25% y-o-y in the 2QFY2021 to RMB4.6 billion, but still 31% above the street’s estimate of RMB3.5 billion.

The lower net profit was dragged by the widening loss from a new business segment, note the analysts.

As such, they have lowered their target price on the counter to US$77 ($104.20) from US$86.

This is to factor in lower profitability due to investment in new initiatives.

The new target price implies 0.7 times 12-month forward electric vehicle (EV) sales, say the analysts.

“We forecast non-GAAP net margin of 1.6% in 3QFY2021 due to the continued drag from the new businesses segment as the higher investment in logistics and Jingxi Pin Pin will continue to drag on margin growth,” they write.

Downside risks include intensified competition in fresh produce and the fast-moving consumer goods (FMCG) segment from Pinduoduo with their subsidies leading to potential fines from regulators.

Source: Bloomberg

https://www.theedgesingapore.com/capita ... ss-segment

[winston]

not vested

3Q21 results expected to be in line

We had a pre-blackout call with JD to discuss its 3-4Q21F results outlook.

JD expects its 3-4Q21 topline growth to be 22-23% yoy, slightly belowexpectations, but the bottom line should be in line, due to better margins.

JD maint ains regular communication with the authorities regarding industry
regulations and will unconditionally follow all rules and regulations.

TP: HK$341

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 36269C3802

[winston]

not vested

JD.com (JD US)
Continuous Market Share Gain Despite Subdued Macro Environment

A call with JD on its 3Q21 result preview revealed that it had lowered its 2H21
revenue growth guidance by about 3% (from the previous 26% to 23%) amid the
sluggish growth in the macro China retail sales.

On the other hand, the company is maintaining its target to add 100m more users by 2021 to reach 600m, anchored by its continued efforts in penetrating lower-tier cities via the Jingxi platform.

We maintain BUY on the company with a higher target price of US$95.00 (HK$331.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 225c1fef51